2014/10/07 ANAHEIM CITY COUNCIL REGULAR
AJOURNED MEETING OF OCTOBER 7, 2014
A notice of adjournment of the regular meeting of October 7, 2014 was posted at 3:00 P.M. and
adjourned to 4:30 P.M. for lack of a quorum. The regular adjourned meeting of October 7, 2014
was called to order at 4:34 P.M. in the chambers of Anaheim City Hall, located at 200 S.
Anaheim Boulevard.
The meeting notice, agenda and related materials were duly posted on October 3, 2014.
PRESENT: Mayor Tom Tait and Council Members: Jordan Brandman, Gail Eastman, Lucille
Kring and Kris Murray.
STAFF PRESENT: Interim City Manager Paul Emery, City Attorney Michael Houston and City
Clerk Linda Andal.
ADDITIONS /DELETIONS TO CLOSED SESSION: None
PUBLIC COMMENTS ON CLOSED SESSION ITEMS: None
At 4:35 P.M., Mayor Tait recessed to closed session for consideration of the following items:
CLOSED SESSION:
1. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
(Subdivision 54956.8 of the California Government Code)
Property: 2000 East Gene Autry Way, Anaheim, CA (Angels Stadium of Anaheim)
Agency Negotiator: Tom Morton
Negotiating Parties: Angels Baseball, LP, Pacific Coast Investors, LLC, City of
Anaheim
Under Negotiation: Price and Terms of Payment Regarding Lease
2. CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION
(Subdivision (d)(1) of Section 54956.9 of the California Government Code)
Name of Case: Jesse Sluder v. City of Anaheim et al., Case No. 30 -2014
00698557.
At 5:05 P.M., council returned from closed session and the agenda was resumed.
INVOCATION: Father John Neneman, San Antonio De Padua Catholic Church
FLAG SALUTE: Council Member Lucille Kring
PRESENTATIONS: Recognizing RHYTHMO and the October 11th Anaheim Mariachi Festival
Gabriel Zavala, director of RHYTHMO Mariachi Academy, announced the academy had been
teaching the community's youth for 17 years and invited all to attend their annual festival on
October 11 at Pearson Park, in honor of the most important music of the Mexican culture. He
then introduced the Mariachi Kids and their music to the audience.
Downtown Anaheim Association check presentation to Growth Opportunities
through Athletics, Learning and Service (GOALS)
City Council Minutes of October 7, 2014
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Devon Reeves, Downtown Anaheim Association, recognized and thanked Larry Herschler for
his volunteer service at various events over the years helping to raise about $300,000 for
different non - profit organizations in Anaheim, including GOALS. This year, she announced, a
check from the Downtown Anaheim Association was presented to GOALS from partial proceeds
from a 5K Run event. !raj Dowlatshahi of GOALS, thanked the city, the community and the
Downtown Anaheim Association for their continuing support.
ACCEPTANCE OF OTHER RECOGNITIONS (To be presented at a later date):
Proclaiming October 5 - 11, 2014, as Public Power Week
Proclaiming October 2014, as National Arts and Humanities Month
Proclaiming October 6 - 10, 2014, as International Walk to School Week
Proclaiming October 2014, as Filipino American History Month
Proclaiming October 5, 2014, as World Teachers Day
Proclaiming October 9, 2014, as Opening Day for the Anaheim Ducks
Recognizing MaxLite on the Grand Opening of their Anaheim Branch
Recognizing West Anaheim Medical Center on their 50 Anniversary
Ginger Edward thanked Council for recognizing the West Anaheim Medical Center, and
extended an invitation to the community to attend their 50 anniversary celebration to be held
on October 23
Christina Noble, American Filipino Association, announced Filipino American History month had
been established to honor the earliest arrivals of Filipinos to the United States back to 1587
when mariners under Spanish command landed in Morro Bay. Today, she remarked, Filipinos
made up the second largest Asian culture in America (more than four million people).
Dr. Linda Wagner, Anaheim City School Superintendent, thanked the Anaheim Police
Department for reaching out and encouraging the district's participation in Walk to School Day
on October 8 adding that police officers and school staff would be seen walking children to
school from various intersections in the city to promote the healthy aspects of walking.
Al Mijares, County Superintendent of Schools, thanked the city for recognizing the contributions
of teachers to the lives of students. Sharing some statistical data, he stated there were 20,000
teachers in the county, 2,000 in Anaheim alone, 300,000 in the state and 3.7 million in the
country.
Aaron Teats, Anaheim Ducks, thanked Council for recognizing the Ducks opening day as they
kick off the hockey season, adding that the Samueli family had been good community partners
in the city and looked forward to the new season.
Janet Lonneker, Public Utilities Department, thanked Council for recognizing Public Power
Week in celebration of safe, reliable electric service to businesses and residents. She invited
the community to participate in Public Power Week on October 9 as part of the Farmer's
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Market, and learn about state -of -the art energy efficiency products, programs and rebates
offered to save on costs and energy.
At 5:30 P.M., Mayor Tait called to order the Successor Agency to the Anaheim Redevelopment
Agency (in joint session with the Anaheim City Council).
ADDITIONS /DELETIONS TO THE AGENDAS: City Clerk Linda Andal announced staffs
request to continue Agenda Item No. 16 to October 21, 2014 to allow staff additional time to
present all related exhibits and with no objections raised, Mayor Tait continued the item.
PUBLIC COMMENTS (all agenda items):
Cecil Jordan Corcoran, Outreach Homeless Ministries, discussed the need for churches to
understand and teach the power of Jesus Christ.
Daniel DeMeyere, resident, submitted pictures and explained his reason for speaking during
public comments was due to various safety issues, water waste, tagging, and construction
debris related to the Brookhurst Street Improvement project. Mayor Tait requested the City
Manager look into these concerns.
William Fitzgerald objected to the hiring of deputy city attorneys to prosecute misdemeanors
alleging this authority had been abused for political reasons, and citing a recent event.
Elchin Mirtayen, submitted a photo and explained he owned a small, minority business and had
received a code enforcement citation which he acted upon immediately. While he was going
through a variance process with the Planning Department to address his business needs, he
received another citation, which he felt was an unfair business practice and requested Council's
help. Mayor Tait asked the City Manager to investigate and follow up with a report to Council.
James Robert Reade read a posting from his website, manuelangeldiaz.com.
Dr. Cherry Li -Bugg urged support for Measure J on the November ballot, a $547 million public
funding measure to support local colleges. She explained how this measure would benefit the
North Orange County Community College District which served 100,000 students each year;
i.e., upgrades to integrated science labs, technology and instructional equipment,
enhancements of class, space and training centers and expansion of veteran's facilities and
services as well as job placement centers.
Victoria de Gomez, resident, reported that Yesenia Rojas had been detained at the Anaheim
Police Station on the night of her birthday celebration.
Joseph Dekling, resident, addressing Item No. 27, speculated that regulating apartment owners
who charged too much for parking and forced their tenants to park in nearby residential streets
might solve the issue of spillover parking. Mayor Tait remarked he would be interested in
knowing if that was one of the reasons for spillover parking, asking that staff provide a report to
Council.
Mark Daniels, resident, urged council candidates to visit neighborhoods such as Anna Drive or
Guinida Lane to discuss ways to make Anaheim a better place for all.
City Council Minutes of October 7, 2014
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Joe Perez, addressing Item No. 27, urged Council to approve permit parking for Laxore Street
citing traffic safety and other concerns.
Matthew Ocup explained he was a business owner in the city for the last seven years with six
employees on his payroll and had complied with a code enforcement request to clean up a
fenced yard on the side of his building. He did so by renting a second warehouse and
transferring the side yard materials to that building. A second citation was received asking that
all materials be removed from behind the building, property which was invisible to the street,
and in response he hired an architectural firm, and submitted plans to the City which were
currently under review. A third citation followed and the speaker requested City Council's help,
believing this citation was unwarranted. Mayor Tait requested the City Manager assistance to
see if there was a more reasonable accommodation to be made.
Ron Bengochea, resident, spoke against districting, remarking that his experience with other
cities that elected representatives by district was that it created turf wars. The current at large
system in which all council members, regardless of whether there were five or eight members,
was his preferred option, as those council members would be held accountable to each and
every resident in the city.
An unidentified speaker spoke in opposition to Agenda Item No. 31, remarking that until Disney
treated their employees fairly, he was opposed to closing city streets for their marathon events.
Cynthia Ward, resident, emphasized that Angels Baseball was using Tustin as an election tactic
to foster criticism against Mayor Tait and that they had no intention of departing Anaheim. She
restated her views on the Angels Baseball Memoranda of Understanding and objected to giving
away future revenues.
Ty Kraemer, resident, explained that the public interpreted the Angel's Memorandum of
Understanding identifying $1 per year for the stadium property lease was considered a
giveaway of city assets. Similarly a trolley car system for the downtown area did not seem to be
a good investment for the benefit gained, money that he believed could be better spent
elsewhere in the community. He addressed election mailer statements, asking candidates to
stop negative comments and making false statements.
Greg Diamond remarked in a spirit of compromise, CATER was willing to put time and effort into
a lawsuit to void the three -year baseball extension (which would mean Angels Baseball had to
stay in Anaheim because their opt out window had passed) and they would do so if the city
would not approve another extension of the baseball lease. He asked this be discussed during
consideration of Agenda Item No. 38.
Lisa Lewis read a detailed letter she had submitted to Mayor Tait referencing council candidate
Doug Pettibone regarding an incident that had occurred in 1998, and asking how the Mayor
could have recruited and supported this candidate.
Mary Daniels corrected statements made by Lisa Lewis, emphasizing her supposed source of
information was not a credible witness and explained why.
Glora Ma'ae, Advisory Committee for Elections, explained that after listening to a number of
experts in the field, the committee had been divided between districting or at large electoral
systems. She had suggested a compromise of residency -based nominees while continuing to
vote at large for each council seat. She felt Anaheim was a city divided and districting would
City Council Minutes of October 7, 2014
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only divide communities further, and was not a good solution for such a diverse population. She
urged the community to vote no on Measure L.
COUNCIL COMMUNICATIONS:
Mayor Pro Tem Murray stated Mr. Fitzgerald's comments were false and without merit.
Addressing comments made about Angels Baseball, Mayor Pro Tem Murray remarked nothing
had been given away and Council was attempting to negotiate a deal to keep Angels Baseball
here long term. There had been no cost to the taxpayers in the framework of the agreement
and it also saved the City $600,000 a year in ongoing maintenance costs. Referencing the
three year extension, she added the city was negotiating with an owner who was putting up the
risk and the liability and had wanted to make a deal last January, and not want an extra three
years, therefore the idea that extending the lease was what cost the city the team was not a
valid point.
Council Member Eastman remarked an earlier speaker commented on the trolley project and
cost stating those dollars could have been used more effectively elsewhere. She clarified that
the majority of those dollars came from federal and county funds and as such were restricted
and could only be used on transportation projects and that no general funds were used.
Mayor Tait spoke to the character of Doug Pettibone, as a neighbor, a hospice chaplain and as
a father, remarking he had encouraged him to run for office. He expressed sorrow for Mr.
Pettibone and his family for having to experience this insult and the offensive politics that was
being played out.
CITY MANAGER'S UPDATE:
Paul Emery, Interim City Manager, announced the upcoming neighborhood council meetings in
October for the West, East, Central and South Districts, and also offered a brief project update
pertaining to comments by Daniel DeMeyere regarding the Brookhurst Street Widening Project.
He reported Mr. Demeyere and neighbors expressed concern due to lack of a traffic signal at an
intersection adjacent to their residences adding that the city's professional staff had made a
determination that it would be an unsafe location for a traffic signal. Staff was proceeding with
the construction that included a controlled turn movement into the neighborhood and would
continue to look for ways to insure safety for pedestrians and the motoring public along that
route.
At 6:40 P.M., Mayor Tait briefly recessed the City Council meeting for consideration of the
Successor Agency agenda, reconvening the meeting at 6:41 P.M.
CONSENT CALENDAR: Mayor Tait indicated he would record an abstention on Item No. 18 as
his firm conducted business with the County of Orange this past year and pulled Item No. 25
from the consent calendar for further discussion. Council Member Eastman then moved to
waive reading in full of all ordinances and resolutions and to adopt the consent calendar as
presented (excluding Item No. 16), in accordance with reports, certifications and
recommendations furnished each city council member and as listed on the consent calendar,
seconded by Council Member Kring. Roll Call Vote: AYES — 5: (Mayor Tait and Council
Members: Brandman, Eastman, Kring and Murray.) NOES — 0. Motion Carried.
City Council Minutes of October 7, 2014
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B105 3. Receive and file minutes of the Cultural and Heritage Commission meeting of May 15,
2014, Parks and Recreation Commission meeting of July 23, 2014, Public Utilities Board
meeting of August 27, 2014, and Community Services Board meeting of September 11,
2014.
D180 4. Preauthorize the Purchasing Agent to award a contract for the replacement of the City
Hall boiler to the lowest responsive and responsible bidder, upon receipt and evaluation
of all bids received, without requiring Council approval of the recommended bid award
due to the critical nature of the boiler, and the need to have the new equipment installed
and operational quickly.
D180 5. Waive the sealed bid requirement of Council Policy 4.0 and authorize the Purchasing
Agent to execute a Master Agreement with Structural Composites Industries, in an
amount not to exceed $56,907 per year, for the purchase of self- contained breathing
apparatus air cylinders for the Fire Department with two one -year renewal options.
D180 6. Accept the lowest responsive bid from Safeway Sign Company, in the amount of
$480,120.90, for providing street and traffic signs for the Public Works Department, for a
one -year period with up to four one -year optional renewals; and authorize the
Purchasing Agent to exercise the renewal options, in accordance with Bid #8274.
7. Award the contract to the lowest responsible bidder, Asplundh Construction Corporation,
AGR -8480 in the amount of $721,703, for the Intelligent Transportation Systems, Changeable
Message Signs and Changeable Arrow Signs Project in the Anaheim Resort for Katelia
Avenue, Harbor Boulevard, Disneyland Drive and Convention Way and authorize the
Finance Director to execute the Escrow Agreement pertaining to contract retentions.
8. Award the contract to the lowest responsible bidder, Altas- Allied, Inc., in the amount of
AGR -8481 $408,580, for the Replacement of Water Pressure Regulating Station No. 10 Project and
authorize the Finance Director to execute the Escrow Agreement pertaining to contract
retentions.
9. Approve the Purchase and Sale Agreement and Grant Deed with SCEL Properties LLC,
P109, in the amount of $169,000, for the sale of remnant city -owned property located at 2203
AGR -8482 West Midwood Lane.
10. Approve the Agreement for Acquisition of Real Property with Cuong Hoa Hoang and Mai
P121, Tieu Hoang, in the acquisition payment amount of $425,000, for property located at 1168
AGR -8484 North Brookhurst Street for the Brookhurst Street Improvement Project from 1 -5 to the
SR -91 Freeway (R/W ACQ2013- 00443).
11. Approve the Agreement for Acquisition of Real Property with Rafael Aguilar- Rodriguez,
P121, in the acquisition payment amount of $457,000, for property located at 1242 North
AGR -8484 Brookhurst Street for the Brookhurst Street Improvement Project from 1 -5 to the SR -91
Freeway (R/W ACQ2013- 00453).
12. Approve the Agreement for Acquisition of Real Property with Sa -Rang Community
P121, Church of Southern California, in the acquisition payment amount of $452,000, for
AGR -8483 property located at 2202 West Falmouth Avenue for the Brookhurst Street Improvement
Project from 1 -5 to the SR -91 Freeway (R/W ACQ2013- 00472).
City Council Minutes of October 7, 2014
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13. Approve the Agreement for Acquisition of Real Property with Douglas L. Poore and
P121, Dianne Poore, in the acquisition payment amount of $462,000, for property located at
AGR -8486 1229 North Catalpa Avenue for the Brookhurst Street Improvement Project from 1 -5 to
the SR -91 Freeway (R/W ACQ2013- 00474).
14. Approve the Agreement for Acquisition of Real Property with Trang Phuong Hoang, in
P121, the acquisition payment amount of $444,000, for property located at 2190 West
AGR -8487 Falmouth Avenue for the Brookhurst Street Improvement Project from 1 -5 to the SR -91
Freeway (R/VV ACQ2013- 00440).
D175 15. Approve a Cooperative Work Agreement extension request to the California Department
of Finance for the Gene Autry Way (West) Project.
16. Approve and authorize the Director of Public Works to execute the Indoor /Outdoor
Advertising Project and License Agreement with Clear Channel Outdoor for
indoor /outdoor advertising services within the ARTIC site, authorize the Director of
Public Works to renew the agreement for no more than one additional term and
determine that previously - certified Final Environmental Impact Report No. 343
(SCH #2009071071) and its addendum are the appropriate environmental documentation
for approval of this item.
This item was continued to October 21, 2014; no action taken.
17. Approve the First Amendment to Agreement with Group Delta Consultants increasing
AGR - 7362.1 the agreement amount from $1,891,140.04 to $1,995,269.04 for testing and inspection
services for ARTIC and authorize the Director of Public Works to approve additional
expenditures for work not included in the scope of services riot to exceed 15% of the
agreement amount.
AGR- 1458.K0.6 18. Approve the Notice of Intent with the County of Orange for animal care and shelter
services for the period of July 1, 2014 through June 30, 2015.
Mayor Tait recorded an abstention on this item. Motion to approve by Council Member
Eastman, seconded by Council Member Kring. Vote: AYES — 4: (Mayor Pro Tem Murray and
Council Members: Brandman, Eastman, and Kring.) NOES — 0. ABSTENTION — 1: Mayor Tait.
Motion Carried.
19. Approve a replacement Master Customer Agreement between Ventyx Inc. and the City
AGR-4746.B for software utilized for settlement of wholesale energy - related transactions with the
AGR- 4746.6.0.1 California Independent System Operator, an Order Form for nMarket CA Nodal, an
AGR- 4746.6.0.2 Order Form for Report Explorer, and a Statement of Work for Report Explorer
AGR - 4746.6.0.3 p p p p
Implementation (collectively "Agreements "), all in an amount totaling $157,332.18, as
well as annual costs thereafter not to exceed $75,000 for software maintenance and
upgrades, and authorize the Public Utilities General Manager, or designee, to execute
the Agreements and other related documents, and take such necessary or required
actions to implement and administer the Agreements.
20. Approve an agreement with Cooperative Personnel Services, dba CPS HR Consulting,
AGR -8488 in amount not to exceed $500,000, for professional consulting services in the design of
written examinations and assessment centers for sworn classifications assigned to
Anaheim Fire & Rescue and the Anaheim Police Department for a period of three years,
with a year -to -year extension up to five years at the discretion of the City Manager.
City Council Minutes of October 7, 2014
Page 8 of 14
D154 21. Approve the 2015 Health and Welfare Plan Rates for part -time employees as listed on
Attachment "A" and authorize the Human Resources Director to execute all required
provider agreements on behalf of the City.
RESOLUTION NO. 2014 -170 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM providing medical insurance benefits to unrepresented part-
time job classifications and superseding Resolution No. 2008 -152 and amendments
thereto.
22. RESOLUTION NO. 2014 -171 A RESOLUTION OF THE CITY COUNCIL OF
D154.5 THE CITY OF ANAHEIM approving a Letter of Understanding between the International
Brotherhood of Electrical Workers, Local 47, representing Anaheim Part-Time Customer
Service Employees and the City of Anaheim
23. RESOLUTION NO. 2014 -172 A RESOLUTION OF THE CITY COUNCIL OF
D154.6 THE CITY OF ANAHEIM approving a Letter of Understanding between the Service
Employees' International Union, Local 1877 and the City of Anaheim.
24. RESOLUTION NO. 2014 -173 A RESOLUTION OF THE CITY COUNCIL OF
D154.7 THE CITY OF ANAHEIM adopting a Memorandum of Understanding establishing terms
and conditions of employment for employees in classifications represented by the
Teamsters, Local 952.
26. RESOLUTION NO. 2014 -175 A RESOLUTION OF THE CITY COUNCIL OF
D175 THE CITY OF ANAHEIM establishing Permit - Eligible Parking District No. 30 (Citron
Resh) and determine the action is exempt from the California Environmental Quality Act
(CEQA) pursuant to Regulation No. 15061(b)(3).
27. RESOLUTION NO. 2014 -176 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM designating the north side of Orange Avenue from Broder
D175 Street to Laxore Street and Laxore Street from Orange Avenue to Academy Avenue as a
"Permit Parking Only" street within Permit - Eligible Parking District No. 24.
28. RESOLUTION NO. 2014 -177 A RESOLUTION OF THE CITY COUNCIL OF
D124 THE CITY OF ANAHEIM accepting certain deeds conveying to the City of Anaheim
certain real properties or interests therein (City Deed Nos. 11717, 11718, and 11738)
(Brookhurst Street Widening Project).
29. RESOLUTION NO. 2014 -178 A RESOLUTION OF THE CITY COUNCIL OF
D124 THE CITY OF ANAHEIM accepting certain deeds conveying to the City of Anaheim
certain real properties or interests therein (City Deed Nos. 11725, 11726, and 11727)
(Katella Avenue Smart Street Project).
30. RESOLUTION NO. 2014 -179 A RESOLUTION OF THE CITY COUNCIL OF
THE CITY OF ANAHEIM accepting certain deeds conveying to the City of Anaheim
D124 certain interests in real properties (City Deeds Nos. 11731, 11732, 11739, and 11740).
31. RESOLUTION NO. 2014 -180 A RESOLUTION OF THE CITY COUNCIL OF
R100 THE CITY OF ANAHEIM requesting temporary closures to Caltrans 1 -5 Offramps for
Avengers Super Heroes Half Marathon (November 16, 2014; Southbound 1 -5 at Harbor
Boulevard, Southbound 1 -5 at Disney Way, Northbound 1 -5 at Katella Avenue).
City Council Minutes of October 7, 2014
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32. RESOLUTION NO. 2014 -181 A RESOLUTION OF THE CITY COUNCIL OF
0129 THE CITY OF ANAHEIM authorizing persons holding certain designated positions to
execute documents for and on behalf of the City of Anaheim for the purpose of obtaining
certain federal financial assistance and /or state financial assistance.
33. ORDINANCE NO. 6306 (ADOPTION) AN ORDINANCE OF THE CITY OF
M142 ANAHEIM amending and restating Subsection .010 of Section 1.01.389 of Chapter 1.01
of Title 1 and Sections 6.44.010, 6.44.150 and 6.44.180 of Chapter 6.44 of Title 6 of the
Anaheim Municipal Code relating to nuisances (Introduced at the meeting of September
23, 2014, Item No. 31).
34. ORDINANCE NO. 6307 (INTRODUCTION) AN ORDINANCE OF THE CITY OF
ANAHEIM amending the zoning map referred to in Title 18 of the Anaheim Municipal
Code relating to zoning (Reclassification No. 2013 - 00263; DEV2014- 00009) (Rezoning
C280 this property located at 2651 West Lincoln Avenue from the General Commercial zone to
the Multiple Family Residential zone).
35. ORDINANCE NO. 6308 (INTRODUCTION) AN ORDINANCE OF THE CITY OF
ANAHEIM amending paragraph .0205 of Subsection .020 (Dwellings - Multiple Family)
C280 of Section 18.42.030 (Residential Parking Requirements) of Chapter 18.42 (Parking And
Loading) of Title 18 of the Anaheim Municipal Code (Zoning Code Amendment No.
2014 - 00119; DEV2014- 00073) (allowing tandem parking spaces in multiple family
residential zones).
36. Approve minutes of the Council meetings of September 9, 2014 and September 23,
0114 2014.
END OF CONSENT CALENDAR:
25. RESOLUTION NO. 2014 -174 A RESOLUTION OF THE CITY COUNCIL OF
D175 THE CITY OF ANAHEIM authorizing the destruction of certain city records more than
two years old (Public Works).
Mayor Tait acknowledged that the destruction of certain city records was part of the normal
record retention process but wanted to ensure that any records pertaining to the ARTIC project
did not fall under this resolution. Natalie Meeks, Public Works Director, responded that projects
that included grants were kept longer than two years due to specific requirements, but that the
time did not start until the completion of the project.
Mayor Tait then moved to approve RESOLUTION NO. 2014 -174 OF THE CITY COUNCIL
OF THE CITY OF ANAHEIM authorizing the destruction of certain city records more than two
years old (Public Works), seconded by Council Member Eastman. Roll Call Vote: AYES — 5:
(Mayor Tait and Council Members: Brandman, Eastman, Kring and Murray.) NOES — 0. Motion
Carried.
37. Consider appointment to the Budget, Investment and Technology Commission to fill an
B105 unscheduled vacancy, term expiring June 30, 2016 (continued from meeting of
September 23, 2014, Item No. 33).
Budget, Investment, and Technology Commission
City Council Minutes of October 7, 2014
Page 10 of 14
Appointment: Laleh Graylee
(unscheduled vacancy of Andrew Cho)
Mayor Pro Tem Murray nominated Laleh Graylee to the Budget, Investment and Technology
Commission. With no other nominees offered, Ms. Graylee was unanimously appointed.
38. Discussion of ongoing negotiations with Angels Baseball and Pacific Coast Investors
regarding Angel Stadium of Anaheim and the Stadium Site.
D124
Director Tom Morton, Convention, Sports and Entertainment, reported that on Friday,
September 26 the city received two letters, one from Angels Baseball and one from Pacific
Coast Investors officially terminating the Memoranda of Understanding approved by Council on
September 3, 2013 related to the negotiating framework for both the Angel Stadium lease and
the ground lease of the Stadium site. As stated in the correspondence received, the city and
Angels Baseball had acknowledged the MOU's were intended as a starting point for discussions
and since its adoption the parties had yet to reach any further agreement. It further stated, that
as more than 12 months had passed since the approval of the MOU's and the parties had been
unable to come to an agreement; Angels Baseball and PCI were electing to terminate the
MOU's. Mr. Morton added as the city had stated previously and as stated by City Attorney
Michael Houston in his acknowledgement of the correspondence, Anaheim was ready to
continue discussions in partnership with Angels Baseball and looked forward to that dialogue.
Mayor Tait asked staff to speak to the value that Anaheim and the stadium offered to Angels
Baseball with Mr. Morton responding that currently Angels Baseball leased the stadium and with
that was the ability to use 12,500 parking spaces on an event day, to have certain sponsorship
opportunities, ticket sales, and food and beverage revenues. In return, the city received
threshold revenues and the Angels had prepaid rent for the renovations that occurred in
1996/97, approximately $80 million that was part of that renovation. The lease was effective
1996 through 2029, with an existing opt -out clause in which the Angels had the ability to opt out
of the lease after the 2015 season, now extended to year 2019. Prior to the three year
extension, the opt -out clause would have ended March, 2017 and with the extension the opt -out
clause was November 2019.
Mayor Tait was pleased that the Angels dropped the original framework for negotiations as he
did not believe omitting "Anaheim" from the team name or transferring the stadium property for
$1 a year was in the best interests of the city. He had been opposed to the lease extension
because without it, it would have been challenging for the team to leave before March of 2017 to
find land, entitle it, build the infrastructure and the stadium and begin playing baseball. He
looked forward to moving forward with a clean slate and working together for an equitable
arrangement for the stadium site and a team name that recognized Anaheim. Contrary to
recent articles, he emphasized, he had been a fan of the Angels since their beginning and
wanted the team to remain and looked forward to finding a deal that benefitted both sides.
Council Member Kring re- emphasized the $1 a year lease was simply the beginning outline for
negotiations and no party believed it was binding, a memorandum of understanding that Arte
Moreno just terminated and would not have done so if was a binding agreement. In addition,
she pointed out, there were not 153 developable acres on the stadium site; there were 12,500
parking spaces, an office building, the Grove and a train station currently on that property which
left 60 to 80 acres of developable land depending on the type of parking required. She pointed
City Council Minutes of October 7, 2014
Page 11 of 14
out that developers for that site were few and far between, highlighting potential projects since
1999. Since that time, she explained, only Arte Moreno expressed an interest in that site with a
project that included restaurants, hotels, etc. Now with the cancellation of that MOU, there was
nothing on the table except the lease extension for the opt -out clause. She did not believe
Anaheim could secure another major league team without building a $1 billion stadium and
hoped to get negotiations back on track. Mayor Tait argued that a MOU typically occurred at
the end of negotiations and he did not feel the $1 a year lease was a fair return for the people of
Anaheim on their property.
Mayor Pro Tem Murray brought up the following points: The MOU's were drafted by the city's
professional staff and outside counsel and were recommended to Council for consideration on
September T after review by the City Attorney and the Finance Director; Angels Baseball
would have the responsibility to maintain, repair and provide capital upgrades for the baseball
stadium to a standard to be agreed upon by both parties during negotiation on the extended
lease; The city would have no obligation for maintenance, repair of the facilities during the
extended lease term; i.e. the city would no longer make a $600,000 annual payment or $40
million over the agreement term, funds that would stay in the general fund; In addition, the
MOU's did not consider backing bonds, assuming liability or putting any up -front money to
develop the and or to upgrade the $150 million in the city's stadium, all of which would have
been the responsibility of Angels Baseball; In addition to the $600,000 a year to be saved if this
agreement were to be adopted, the city would also generate $5 million in direct revenue to the
general fund annually plus $200 million in economic activity.
She added this was a broader framework for negotiation than the public gave it credit for and
that it was unfortunate that residents were led to believe that $1 a year for the lease was the
only figure Council was considering. Stating it was important to get the Angels negotiating
sooner rather than later, she requested staff bring back an agenda item to create a
subcommittee of Council Members to sit on the negotiation team and further requested the CSL
consultants return to present their findings again.
Mayor Tait pointed out that much of his disagreement had to do with the economic report, a
report he believed was inaccurate. Mayor Pro Tem Murray asked staff to speak to the
credentials of CSL, the consultants who presented the stadium economic report. Mr. Morton
responded CSL was in the business of performing sporting and convention industry impact
reports and Anaheim had used them for a number of years because of their experience and
good performance record. Mr. Emery stated city staff believed the MOU's were the framework
for the negotiations to begin and the Angels had acknowledged there was work to be done and
that the MOU's were non - binding. Regarding the CSL report, he explained CSL was a
professional firm with experience in this field and why staff relied on their services. He further
confirmed there were no restrictions on what could be discussed or brought up during
negotiations.
Mayor Tait still questioned the CSL report's accuracy, asking Mr. Morton if he believed baseball
fans regularly spent $14+ outside the stadium. Mr. Morton responded that it was important to
note that Anaheim residents were not included so as to not double -count potential revenues and
he believed out -of -the area fans spent more than $14 a game. Mayor Tait disagreed remarking
that premise might work in other stadiums but he did not believe that was the case in Anaheim.
Council Member Kring emphasized the owners of Catch and other surrounding restaurants such
as JT Schmitt, Noble Ale and the Tilted Kilt did much of their business during baseball season
City Council Minutes of October 7, 2014
Page 12 of 14
and the Catch restaurant claimed they would be out of business if the Angels departed. She
pointed out the city also received over $18 million a year from Angels Baseball since 1996, and
threshold revenues for seats sold over 2.6 million and they also contributed a significant amount
of money each year to nonprofit charities such as the Boys and Girls Club, YMCA, Cops4Kids,
Illumination and others.
Mayor Tait remarked that recent election mailers were making misleading and false statements
about his wanting the Angels to leave and what he envisioned as development on the stadium
property. He emphasized he valued the team, wanted them to remain and would consider all
manner of development for the stadium site that would work for both the city and the team.
Council Member Brandman remarked that as a policy body, he believed Council relied on data
prepared by professionals, whether they were city employees or contract professionals hired by
the city and recommended by staff. He asked why Mayor Tait thought the CSL report was
inaccurate. Mayor Tait responded that he had been attending games since the stadium was
built and it was his experience that the vast majority of fans drove to the stadium lot, went to the
game and drove out without spending money at restaurants around the stadium. He recognized
that the restaurants were packed, but that those figures numbered in the hundreds and did not
reflect 37,000 fans spending $14.25 per game at every event. He added that the author of the
CSL report indicated he had never surveyed anyone in Anaheim about their spending patterns
nor did he perform any kind of study specific to the Anaheim stadium. For those reasons,
Mayor Tait did not think there was $200 million of economic activity generated and $5 million of
revenue from the city derived from having Angels Baseball in Anaheim. He indicated that might
be the case at Wrigley Field or Fenway Park, but it was not the pattern in Anaheim.
Council Member Brandman inquired if Mayor Tait's firm was currently doing business with the
city of Tustin with Mayor Tait responding that his firm was working in Tustin, but he was not sure
whether it was with the city. He added his firm was one of the largest engineering firms in the
area and had worked in every city in Orange County and continued to do so. Referencing an
earlier statement regarding a conflict of interest because of property near the stadium, Mayor
Tait reported he had a partnership in a piece of property near the stadium and because of that
he had discussed it with the city attorney, sent a letter to the Fair Political Practices Commission
(FPPC), followed the law and transferred 100 percent of his partnership to his independent adult
children and no longer had an interest in that property. He subsequently received a letter from
the FPPC clearing him of a conflict. Council Member Kring stated that the even though Mayor
Tait had transferred that property to his children, it was required that he refrain from voting on
matters concerning the stadium site for one year, a time period which began in August 2012 and
ended in August 2013. She pointed out there had been a meeting on November 13, 2013 in
which Mayor Tait tabled a request for an ad hoc committee of council members to join the
negotiating team for Angels Baseball. Mayor Tait responded that a discussion was held at that
time as to whether or not he had a conflict of interest and he had informed council that the
FPPC had cleared him. He further stated he did not participate in any stadium deal points,
simply whether or not he had a conflict of interest in that matter.
Council Member Eastman acknowledged she wanted the public to understand that she stood
behind staff's recommendation and relied on their professional expertise and that while she
relied on staff for the information they provided, she also used her own judgment in studying the
issues. She looked forward to getting back to the table with Angels Baseball and would support
selecting two council members to work closely with the negotiating team and staff to ensure a
City Council Minutes of October 7, 2014
Page 13 of 14
decision that was in the best interests of the city and offered her name for consideration of that
committee.
Mayor Tait appreciated everyone's comments and the healthy public dialogue between council
members as they worked together to come up with an agreement that was a win /win for all.
REPORT ON CLOSED SESSION ACTIONS: None
COUNCIL COMMUNICATIONS:
Council Member Brandman reported his attendance at the Solar Plant Energy dedication, one of
the largest roof - mounted solar systems in the nation, located on the Convention Center and
generating enough kilowatt hours of electricity to power 600 homes a year. He encouraged the
community to take advantage of the Public Power Week celebration on October 9 at the
Downtown Anaheim Farmers Market. He also requested a proclamation recognizing and
honoring Senator Lou Correa for his years of service to Anaheim and the surrounding
communities to be presented on the October 21 agenda.
Mayor Pro Tem Murray requested staff bring back an agreement for consideration with The
Grove and the Anaheim Performing Arts Committee for the purpose of developing a performing
arts center in Anaheim and designating the Grove as a potential site. She also announced the
9 Annual Mariachi Festival with proceeds supporting music and arts in schools and the Muzeo
Gala, both to be held on October 11 Other events highlighted was the Kash for K9 fund - raiser
at Angel Stadium, to raise funds for two K9 sculptures designated for the new dog parks,
thanking Angels Baseball for supporting this effort.
Council Member Kring spoke of her attendance at the Solar Plant Energy dedication and the
Monte Vista Fire Station with their Ready, Set, Go Block Party in recognition of Fire Prevention
Week. She also announced the Muzeo Quilters Ball on October 11 in honor of the American
Quilt exhibition, the Anaheim Fall Festival scheduled for October 25 and Veteran's Day
celebration on November 8 Ms. Kring requested the winners of the fall pageant be recognized
at the October 21 meeting.
Council Member Eastman discussed her attendance at the Solar Plant Energy dedication,
announced the Public Power Week celebration on October 9 at the Downtown Anaheim
Farmers Market and the Orange County Family Justice Center Luncheon on October 14 She
also requested a proclamation recognizing the Angel's as the American League Division
Champions.
Mayor Tait spoke of the Angel's outstanding baseball season and his attendance at a number of
events: the Military Banner Ceremony /Purple Heart City unveiling, the Working Wardrobes
Outlet Celebration, the Orange County Aging Services Collaborative, the Orange County
International Auto Show, the Walnut Village 5th Anniversary Celebration and the Western
Association of Collegiate Business Schools Conference. He announced the following upcoming
events: the Canyon High School instrument collection drive on October 1 1 th in search of musical
instruments for Orange Unified School District, the Anaheim Mariachi Festival on October 1 1 tH
the 13th MEU Car Wash on October 16 and the Anaheim Hills Rotary Club Oktoberfest on
October 18 and the start of the Anaheim Ducks season.
City Council Minutes of October 7, 2014
Page 14 of 14
ADJOURNMENT:
At 8:03 P.M., with no other business to conduct, Mayor Tait adjourned the October 7, 2014
council meeting.
R spectflly submitted,
Linda N. Andal, CMC
City Clerk